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Are Investors Undervaluing ASE Technology (ASX) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is ASE Technology (ASX - Free Report) . ASX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.58 right now. For comparison, its industry sports an average P/E of 15.68. Over the last 12 months, ASX's Forward P/E has been as high as 11.92 and as low as 5.54, with a median of 8.10.
We also note that ASX holds a PEG ratio of 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASX's industry currently sports an average PEG of 0.60. Within the past year, ASX's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.30.
Value investors will likely look at more than just these metrics, but the above data helps show that ASE Technology is likely undervalued currently. And when considering the strength of its earnings outlook, ASX sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing ASE Technology (ASX) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is ASE Technology (ASX - Free Report) . ASX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.58 right now. For comparison, its industry sports an average P/E of 15.68. Over the last 12 months, ASX's Forward P/E has been as high as 11.92 and as low as 5.54, with a median of 8.10.
We also note that ASX holds a PEG ratio of 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASX's industry currently sports an average PEG of 0.60. Within the past year, ASX's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.30.
Value investors will likely look at more than just these metrics, but the above data helps show that ASE Technology is likely undervalued currently. And when considering the strength of its earnings outlook, ASX sticks out at as one of the market's strongest value stocks.